6 - DOE State Aid Formula Presentation Wednesday, January 22, 2014 5:13 PM south dakota DEPARTMENT OF EDUCATION
State Aid to General Education - Statutory $1,527,797 $1,527,797 State Aid to General Education - Move to 3% $6,510,000 $6,510,000 State Aid to Special Education $0 $0 $ 18,847 $18,847 Co nsolidation Incentives ($ 56,400) ($56,400) Teachscape Ongoing Support $119,295 $119,295 Effective Teachers/leaders eGrant System Ongoing Support $100,000 $100,000 K12 Data Center Services $88,614 $88,614 All Outcomes Nonrecurring Technology Grants ($500,000) ($500,000) $15,533 $15,533 $7,823,686 $7,823,686
General State Aid • Current formula took effect Jan. 1, 1997 - Updated in FY2008 to change from prior year ADM to greater of current year or previous year fall enrollment and to add component for growing enrollment. Also fixed the small school adjustment at a maximum of 20°/o of the FY2007 PSA. - Updated in FY2011 to use the greater of current year fall enrollment or average of prior 2 years for calculation of payment. Growing enrollment component was eliminated - Updated in FY2014 to include an adjustment for limited English proficient students • Two main sources of funding - Money raised locally through property taxes - Money raised by state through statewide taxes
Funding Formula • Starts with same amount of funding per student • Called the Per Student Allocation (PSA) • PSA = $4,625.65 in FY14 • Other "Adjustments" - Small School Adjustment (SSA) - LEP adjustment - Decreasing enrollment (2 year averaging)
3 Steps to Funding Formula • 1) Determine Local Need PSA x State Aid Fall Enrollment + SSA X State Aid Fall Enrollment + LEP X (.25 X PSA) • 2) Determine Local Effort Property valuations X Levies • 3) Determine State Share Local Need - Local Effort
1) Determine Local Need • Begin with previous year's PSA • Figure inflationary increase to PSA - CPI or 3°/o, whichever is less - For FY2015, the CPI is 1.6°/o but the Governor is recommending a 3°/o increase • Determine state aid fall enrollment - Number of students last Friday of September - Minus students for whom district receives tuition - Plus students for whom district pays tuition - Use the greater of the current year or average of 2 previous years • Add Small School Adjustment (SSA) if applicable • Add LEP Adjustment if applicable
Per Student Allocation (PSA) • Multiply the previous year's PSA by the Index Factor - Index Factor: change in the Consumer Price Index (CPI) for the previous year or 3°/o, whichever is less • For FY2015, the Governor is recommending a 3°/o increase, or 1.4°/o higher than the increase in the index factor of 1.6°/o 2014-2015 Per Student Allocation 2013-2014 School Year Per Student Allocation 4,625.65 $ Increased by 1.6% (CPI-W or 3% whichever is less) 74. 01 $ Addtional 1.4% to get to 3% 64.76 $ 2014-2015 School Year Per Student Allocation 4,764.42 $
State Aid Fall Enrollment • State Aid Fall Enrollment: Greater of the current year enrollment or the average of the two previous years enrollmentof students in grades K-12 as of the last Friday in September, adjusted for students for which tuition is paid and reduced by students for whom tuition is received.
"Greater Of" Language • Allows districts to use either two-year average or current year count of students, whichever is greater • Softens blow for districts with declining enrollment • For the 2013-14 school year, 67 districts are eligible to use the 2 year averaging count
History of Fall Census Enrollment for Public Schools Total K-12
History of Fall Census Enrollment for Public Schools Grades K - 12 12,000 l l.500 11 , 000 10,500 10,000 9,500 9,000 8,500 8,000 7,500
History of Fall Census Enrollment for Public Schools Grades K . 6 -- Gt.ch!:FCIUf -- Grilder'.w: -- ~$( .. Un ......
History of Fall Census Enrollment for Public Schools Grades 6-12 11,500 11,000 -- -- 10,500 10,000 9,500 9,000 -- Grod<O..... 8,500 -- <-'.ct.lwctw 8,000
Small School Adjustment (SSA) • Put in place to recognize that there are economies of scale in larger districts that can't be obtained in smaller districts • SSA is fixed dollar amount per student based on sliding scale • Calculated on a sliding scale for districts with enrollments less than 600 - The greater the enrollment, the smaller the adjustment per student • Adjustment is based on the FY2006 PSA of $4,732.72 - This does not increase with the Index Factor
Limited English Proficient (LEP) Adjustment • New in FY2014 - Part of SB235 of the 2013 Legislative session • Put in place to recognize that there are additional costs associated with educating children who are not proficient in the English language • Adjustment is based on the 25°/o of the current PSA multiplied by the number of children who score below a 4.0 on the state-administered language proficiency assessment in the prior school year
Putting it All Together: Local Need 1) Determine Local Need PSA x State Aid Fall Enrollment + SSA X State Aid Fall Enrollment + LEP X (.25 X PSA) State Aid Fall Enrollment 131,250 X 2014-2015 School Year Per Student Allocation 4,764.42 $ Sub Total $ 625,330,125 Plus Other Adjustments: Small School Adjustment 17,583,588 LE P Adjustment 3,712,674 Equals Statewide Local Need 646,626,387
2) Determine Local Effort • Property Valuations/1000 x Levies = Local Effort - Levies set annually by the legislature • Property taxes paid on calendar year basis • State aid calculated on fiscal year basis • When calculating property valuations, 1 /2 of the current calendar year and 1/2 of the next calendar year is used to determine total property valuations in the formula
AG Other/Utilities 2011 pay 2012 $8. 491 $2.388 2012 pay 2013 $2.322 $8.628 2013 pay 2014 $2. 090 $9.200 2014 pay 2015 est $1.782 $9.106 STATE AID PROPERTY VALUATIONS TOTAL AG Owner 0cc Othe r/ Utili ti es Total 2011 pay 2012 $21 ,199,956,763 $23,897, 051 ,510 $15.422,245,257 $60,519,253,530 2012 pay 2013 S23 ,008, 211 ,055 $23,862,359,867 $15,547,7 11 ,043 $62,418, 281 ,965 2013 pay 2014 S27 , 031 .806.559 $24.811.653.067 $15,951,422,048 $67.794, 88 1. 674 2014 pay 2015 est $25,307,886,128 $16,110,936,268 $71,964,763,808 S30 , 545,941.412 13 % 2% 1% AMOUNT RAISED (Valuation/$1,000 x Levy ) Total AG Owner 0cc Other/Utilities 2011 pay 2012 $50,625,497 S94 , 751 ,809 $130,950,284 $276,327,590 $53.425.066 S96 , 1 41 ,448 $134,1 45 . 651 2012 pay 2013 $283.712.165 2013 pay 2014 $56.496.476 $106, 590 ,862 $146,753,083 $309.840.420 2014 pay 2015 est $54,432,868 $107,609,132 $146,706,186 $308, 748 ,185 FY15 EST IMATE OF LOCAL EFFORT AG Owner Oc c Other/Utilities Total $28 ,248.238 553,295, 431 $73,376, 541 $53,804,566 $73,353,093 $27 ,216.434 $ 55 ,464,672 $107,099,997 $146,729,634
"Lost" Local Effort • There are a few districts who generate more in local effort than the district's total need in the funding formula • This local effort is "lost" to the formula when determining the statewide local effort • Therefore, an adjustment is made in the funding formula - For FY15 estimating $2,999,066 - Just finalized FY14 and we are at $3,146,428
I st Half Loca l 2nd Half Local Lo cal Local Effort Effort E ffort Revenue % St ate Aid % ( Lo cal Effort - District Name TOTAL Need Pay 2013 ( Pay 2014) Share Share Total N ee d) 128 . 26 % 0.00% $ A gar- Blu nt-Onida 58-3 $1.477. 916 $882.386 $1.013. 234 Custer 16 -1 $4.024. 130 $ 1. 949.620 $2. 167 . 285 1 02 . 31 % 1 . 55 % $ El k Moun tai n 16-2 $65 , 678 $87. 683 $98, 627 283 . 67 % 0. 00 % $ H ill City 51-2 $2 . 495 ,800 $ 1. 504. 926 $1.584. 688 123 . 79 % 0. 00 % $ Hoven 53-2 $597, 125 $399 .1 24 $458. 139 143 . 57 % 0. 00 % $ Le ad-D ea dwood 40-1 $3.829.899 $2.608.078 $2,883. 186 143 . 38 % 0. 00 % $
3) Determine State Share • State Share = Local Need - Local Effort + Adjustment for "Lost" Local Effort Statewide Local Need $ 646,626,387 Less: Statewide Local Effort $ 309, 294 ,303 Adjust for districts whose local effort exceeds need $ 2,999, 066 Total Fiscal Year 2015 State Aid $ 340,331,150
Multiplied by: 2014-2015 Per Student Allocation 2013-2014 School Year Per Student Allocation $ Increased by 1.6% CPI-W or 3% 'Nhichever is less) $ Addtional 1.4% to get to 3% $ 2014-2015 School Year Per Student Allocation $ $ 625,330,125 Plus Other Adjustments: Sma ll School Adjustment $ 17,583,588 ELL Adjustment $ 3,712,674 Equals Statewide Local Need $ 646,626,387 Less: S ta tewide Local Effort $ 309,294,303 Adjust for districts 'Nhos e local e ffo rt exc ee ds n eed $ 2,999,066 Total Fiscal Year 2015 State Aid $ 340, 331 ,150 Fiscal Year 2014 General Funds Budget ed $ 330,295,934 Fiscal Year 2014 LEP Budgeted 2,100,000 $ Fiscal Year 2014 Total Budget for State Aid $ 332,395,934 FY15 LEP Funds Needed (LEP Ad j. X 53.8%) $ FY15 General Fund Need less FY14 Budget $
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